Senior associate Kristel Raidla writes in the latest issue of M&A magazine ACQ Finance that the general feeling in Estonia is that the worst of the economic crisis is over by now. She gives an overview of the Baltic current situation:
“As a result of the recession, we experienced a considerable decrease in the number of M&A deals, with no financing available for strategic investments. Despite of having considerable funds available, private equity and venture capital firms stopped making new investments due to increased risks related to general economic situation. At the same time they could not exit previous investments due to lack of purchasers and stand-still in capital markets.
As a result, we had to review and adjust the methodology of our work. There were limited financial resources available for engaging advisors and clients expected us to work faster than ever. For example, there was no more demand for thorough due diligence reports, and red-flag summary reports became the norm. Working under capped fees and tight time schedules forced us to approach due diligence in a new manner. We had to put a lot of effort in determining the scope of our work – higher materiality thresholds, limited areas subject to review, increased reliance on information provided by the target, etc.
The new approach to legal services means that “efficiency” is the name of the game, both internally and in terms of delivering value to clients. The latest economic figures seemto indicate that recession has slowed down in our region. Estonia seems to be in a better economic shape compared to Latvia and Lithuania and the government expects to join the eurozone in 2011.
While 2011 may be a bit too optimistic even for Estonia, other Baltic States are not likely to adopt the eurowithin the next couple of years. Unlike Latvia and Lithuania, Estonia has one of the lowest government debts in the EU and meeting the Maastricht criteria in the nearest future should be realistic.
The general feeling in Estonia is that the worst of the economic crisis is over by now. In line with the recovery of the world’s economy, export should lead the way towards stabilisation while direct foreign investments are needed for facilitating new growth. Apparently Latvia has been hit hardest by the recession and its recovery is expected to be slow and bumpy. Lithuania is said to suffer a bit less.”
Kristel Raidla has advised on a wide range of significant acquisition and disposal transactions offering. Her experience also includes providing advice on share and asset deals, strategic and financial investments and she has arranged deals through auctions.
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Senior associate Kristel Raidla provides expert opinion to ACQ Finance
Senior associate Kristel Raidla writes in the latest issue of M&A magazine ACQ Finance that the general feeling in Estonia is that the worst of the economic crisis is over by now. She gives an overview of the Baltic current situation:
“As a result of the recession, we experienced a considerable decrease in the number of M&A deals, with no financing available for strategic investments. Despite of having considerable funds available, private equity and venture capital firms stopped making new investments due to increased risks related to general economic situation. At the same time they could not exit previous investments due to lack of purchasers and stand-still in capital markets.
As a result, we had to review and adjust the methodology of our work. There were limited financial resources available for engaging advisors and clients expected us to work faster than ever. For example, there was no more demand for thorough due diligence reports, and red-flag summary reports became the norm. Working under capped fees and tight time schedules forced us to approach due diligence in a new manner. We had to put a lot of effort in determining the scope of our work – higher materiality thresholds, limited areas subject to review, increased reliance on information provided by the target, etc.
The new approach to legal services means that “efficiency” is the name of the game, both internally and in terms of delivering value to clients. The latest economic figures seemto indicate that recession has slowed down in our region. Estonia seems to be in a better economic shape compared to Latvia and Lithuania and the government expects to join the eurozone in 2011.
While 2011 may be a bit too optimistic even for Estonia, other Baltic States are not likely to adopt the eurowithin the next couple of years. Unlike Latvia and Lithuania, Estonia has one of the lowest government debts in the EU and meeting the Maastricht criteria in the nearest future should be realistic.
The general feeling in Estonia is that the worst of the economic crisis is over by now. In line with the recovery of the world’s economy, export should lead the way towards stabilisation while direct foreign investments are needed for facilitating new growth. Apparently Latvia has been hit hardest by the recession and its recovery is expected to be slow and bumpy. Lithuania is said to suffer a bit less.”
Kristel Raidla has advised on a wide range of significant acquisition and disposal transactions offering. Her experience also includes providing advice on share and asset deals, strategic and financial investments and she has arranged deals through auctions.